New. Markets. Tax. Credit. Program COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND U.S. DEPARTMENT OF THE TREASURY FORM CDFI-0019

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1 New Markets Tax Credit Program C O M M U N I T Y D E V E L O P M E N T E N T I T Y CERTIFICATION APPLICATION OMB APPROVAL NO REV. MAY 2003 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND

2 ENTERPRISE BUSINESS APPLICATION OMB Approval No HOUSING invest FUND CDFI-0019 Paperwork Reduction Act Notice. This submission requirements package is provided to applicants for Community Development Entity (CDE) certification under the New Markets Tax Credit (NMTC) Program. Applicants are not required to respond to this collection of information unless it displays a currently valid OMB number. The estimated average burden associated with this collection of information is 5 hours per applicant. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Financial Equity Manager, Department of the Treasury, Community Development Financial Institutions Fund, th Street, NW, Suite 200 South, Washington, DC EQUAL revitalize ii ii capital

3 TABLE OF CONTENTS INTRODUCTION APPLICATION INSTRUCTIONS COMPLETENESS CHECKLIST iv 1 2 Part I. Part II. Part III. Part IV. APPLICANT INFORMATION DESIGNATION OF CRITERIA FOR CDEs A. LEGAL ENTITY B. PRIMARY MISSION CERTIFICATION ATTESTING TO PRIMARY MISSION C. ACCOUNTABILITY SERVICE AREA FORM ACCOUNTABILITY CHART CERTIFICATION OF AUTHORIZED REPRESENTATIVE QUESTIONNAIRE OF APPLICANT CDES GLOSSARY OF TERMS FOR NMTC PROGRAM 19 iii

4 ENTERPRISE HOUSING invest FUND QUAL revitalize BUSINESS iv INTRODUCTION capital CDFI Fund Mission The mission of the Community Development Financial Institutions Fund (the Fund) is to increase the capacity of financial institutions to provide credit, capital and financial services to underserved markets. It achieves this mission by directly investing and supporting Community Development Financial Institutions (CDFIs), Community Development Entities (CDEs) and other financial institutions through four primary programs: 1) the CDFI Program; 2) the Bank Enterprise Award Program; 3) the Native American CDFI Development Program; and (4) the New Markets Tax Credit Program. CDFI Program The CDFI Program seeks to promote the development of a national network of community-based financial institutions that are dedicated to community development. The Fund certifies organizations as CDFIs and offers the following program components to support their development and growth: Financial Assistance (FA)Component Provides Financial Assistance in the form of grants, loans, equity investments, deposits, and credit union shares and TA grants to certified CDFIs in support of identified business plans. This program component is intended to provide assistance to strengthen established CDFIs in order to better serve underserved markets. Technical Assistance (TA) Component (including Native American Technical Assistance) (TA/NATA). Provides TA grants to CDFIs and entities proposing to become CDFIs in order to build their capacity to better address the community development and capital access needs of their particular target markets including Native American, Alaska Native or Native Hawaiian communities. Bank Enterprise Award Program The Bank Enterprise Award (BEA) Program provides financial incentives to insured depository institutions for the purpose of promoting investments in, or other support to, CDFIs and facilitating increased lending and provision of financial and other services in economically distressed communities. Native American CDFI Development (NACD) Program The Native American CDFI Development (NACD) Program provides grants to acquire services to be used to create CDFIs that will primarily serve Native American, Alaska Native, and/or Native Hawaiian communities. The proposed CDFI may serve a single community or multiple communities, on or off Indian Reservations. The NACD Program largely replaces the Native American CDFI Technical Assistance (NACTA) Program implemented in FY New Markets Tax Credit Program Under the New Markets Tax Credit (NMTC) Program, taxpayers may claim a credit against Federal income taxes for Qualified Equity Investments made to acquire stock or other capital interests in designated CDEs. Substantially all of the Qualified Equity Investments must in turn be used by the CDE to, among other things, make loans to, or equity investments in qualified businesses or CDEs operating in Low-Income Communities (LIC). The credit available to the investor (either the original purchaser or a subsequent holder) covers a seven-year period. In each of the first three years, the investor receives a tax credit equal to five percent of the total amount paid for the stock or capital interest at the time of purchase. For the final four years, the amount of the tax credit is six percent annually. The NMTCs are allocated by the Fund to 1 Terms in Capitalized Italics are defined in the Glossary of Terms found at the end of this application and are available on the Fund s website:

5 CDEs under a competitive application process. To qualify as a CDE, an entity must be a domestic corporation or partnership that: 1) has a primary mission of serving, or providing investment capital for LICs or Low-Income Persons; 2) maintains accountability to residents of LICs through their representation on a governing or an advisory board to the entity; and 3) has been certified as a CDE by the Fund. CDEs may be non-profit or for-profit entities, but only for-profit CDEs are entitled to provide NMTCs to their investors (for more information on this, refer to Applying for NMTC Allocations below). Organizations, including non-profit entities, that do not intend to apply to the Fund for NMTC Allocations may nonetheless find it beneficial to gain designation as a CDE, since CDEs that receive NMTC Allocations may use proceeds from Qualified Equity Investments to: make equity investments in other CDEs, provide loans to other CDEs and purchase qualifying loans from other CDEs. Applying for Designation as a CDE Any organization seeking CDE designation must apply to the Fund. An Applicant CDE must be a legally established entity at the time of application submission. Each entity seeking certification as a CDE must also be a corporation or partnership for Federal tax purposes at the time of application submission. An organization may apply for certification solely on its own behalf, or it may apply on behalf of itself and one or more Subsidiary Applicants, provided that all of the entities seeking certification are legally established at the time of application. Each entity seeking certification as a CDE must have a valid Employer Identification Number (EIN) at the time the CDE Certification Application is submitted. NOTE: CDFIs and Specialized Small Business Investment Companies (SBICs) seeking certification as CDEs do not need to complete these application materials. Organizations that are CDFIs and/or SSBICs automatically qualify as CDEs, and need only register electronically via the Fund s website, Subsidiaries and Affiliates of CDFIs and SSBICs do not automatically qualify as CDEs. Also, Subsidiaries of entities that are already certified as CDEs do not automatically qualify as CDEs. Maintaining Designation as a CDE All CDEs may be required, on an annual basis, to certify to the Fund that they continue to meet their primary mission and accountability requirements. The Fund may collect additional information from all CDEs that are awarded NMTC Allocations and/or are recipients of Qualified Low-Income Community Investments (QLICIs) from other CDEs. Information collected may include, but is not limited to, the following: For a CDE that is also a certified CDFI or SSBIC, certification that no material changes have occurred to affect its status as a CDFI or SSBIC; For all other CDEs: 1) Data indicating that at least 60 percent of the CDE s activities (e.g., loans and investments) have been directed to LICs or to Low- Income Persons; and 2) Information indicating that the organization remains accountable to residents of the LICs it is serving. If the CDE cannot provide such information, the Fund may revoke the organization s CDE designation. Applying for NMTC Allocations Both for-profit and non-profit CDEs may apply to the Fund for an allocation of tax credits, but only a for-profit CDE is permitted to provide tax credits to its investors in exchange for stock or capital interests. A non-profit CDE wishing to INTRODUCTION community INVESTMENT future BUILD access v

6 ENTERPRISE BUSINESS INTRODUCTION apply for NMTC Allocations will need to demonstrate, prior to entering into an Allocation Agreement with the Fund, that: 1) it controls one or more Subsidiary CDEs that are for-profit entities; and 2) it intends to transfer the entire allocation of tax credits it receives to those Subsidiary entities. NMTC Allocations will be awarded to CDEs on a competitive basis, pursuant to a Notice of Allocation Availability (NOAA) that is published in the Federal Register. All application materials and guidance on allocations are available on the Fund s website at under New Markets. Allocation and Use of NMTCs Each applicant that is selected to receive a NMTC allocation must enter into an Allocation Agreement with the Fund prior to receiving its allocation. This agreement will specify the terms and conditions of the NMTC allocation. HOUSING CDFI fund invest FUND QUAL capital revitalize vi

7 T ip: Each entity included in the application must have its own valid Employer Identification Number (EIN) prior to submission of the application. Failure to include this information for any entity will result in the rejection of the entire application. For more guidance on obtaining an EIN, refer to the Fund s CDE Certification Q&A Document. INSTRUCTIONS 1) Read the applicable CDE Certification Guidance published in the Federal Register, Q&A guidance, and all available website materials that accompany this application for CDE certification. 2) Consult the Glossary of Terms when completing the application. All terms and phrases that are in Capitalized Italics in the application can be found in the Glossary. 3) Complete the application in its entirety. Failure to submit complete application materials may result in the Fund s rejection of the application. Follow the instructions provided under each Part of the application. 4) Submit one original and one copy of this application to the address below. The copy should be placed in a three-ring binder, without staples or other forms of binding. The original should not be placed in a binder and should not include tabs. 5) Optional: Applicants may find it helpful to prepare the Accountability Chart in Part II of the application in a MS Word file instead of typing the information into the printed version. Files may be obtained on the Fund s website, under New Markets. 6) Reminder: Certified CDFIs and SSBICs automatically meet the requirements of a CDE and may register to be CDEs on-line at under New Markets. SUBMITTING YOUR APPLICATION Send to: Bureau of the Public Debt 200 Third Street, Room 211 Parkersburg, WV Attn: Manager, Franchising Unit CDE Certification Application (only to be used on shipping labels when using overnight delivery services) Applications faxed or sent via will not be accepted. ADDITIONAL QUESTIONS AND INFORMATION SOURCES If you have any questions about this application, you may contact the Fund by telephone at (202) , by at cdfihelp@cdfi.treas.gov, or visit the Fund s website at under New Markets. APPLICANT INSTRUCTIONS community INVESTMENT future BUILD access 1

8 ENTERPRISE HOUSING 2 COMPLETENESS CHECKLIST invest FUND EQUAL revitalize BUSINESS capital Completeness Checklist Please complete this checklist and submit it as part of your CDE Certification Application. If any of the following information is missing from the CDE Certification Application, the Fund may determine that the application is incomplete. If such a determination is made, the Fund will notify the Applicant CDE in writing that the application for the Applicant CDE and, if applicable, Subsidiary Applicant(s), has been rejected and will not be reviewed any further. PART I. Applicant CDE Information and, if applicable, Part I. Subsidiary Applicant Information for each Subsidiary Applicant. This must include the signature of the Authorized Representative for the Applicant CDE and, if applicable, each Subsidiary Applicant. PART II. Establishing documents filed with the state and IRS notification of assignment of an EIN, for the Applicant CDE and each Subsidiary Applicant. Organizational documents indicating the primary mission of the Applicant CDE. An Applicant CDE seeking to certify Subsidiary Applicants as CDEs must also either: (1) provide organizational documents indicating the primary mission for each Subsidiary Applicant seeking designation as a CDE; OR (2) sign the Certification Attesting to Primary Mission of Subsidiary Applicants. Service Area Form for Applicant CDE and, if applicable, each Subsidiary Applicant. Accountability Chart for the Applicant CDE and, if applicable, each Subsidiary Applicant. If applicable, geocoded data reports. If applicable, narrative information detailing the process by which feedback is obtained by and from advisory boards. PART III. Certification of Authorized Representative. PART IV. Questionnaire of Applicant CDEs.

9 PART I: APPLICANT CDE INFORMATION 1. Applicant CDE Name: 2. Applicant CDE Employer Identification Number (required for processing) 1 : 3. Is the Applicant CDE already certified as a CDE? Yes No If yes, identify the CDE Control Number of the Applicant CDE: 4. Mailing Address (Provide mailing address and physical address for overnight deliveries (if different). Provide nine-digit zip code): 5. Authorized Representative Name and Title, and address if different from #4: Telephone number: Fax number: address: 6. Congressional District of Applicant CDE s main office: 7. Market served and estimated % of total activities (percentages should add up to 100%): % Major urban areas in a Metropolitain Area of equal to or greater than 1 million (include both central city and surrounding suburbs). % Minor urban areas in a Metropolitain Area of less than 1 million (include both central city and surrounding suburbs). % Rural areas 8. Structure of the Applicant CDE (check all that apply): For-profit Non-profit Small Business Investment Company (SBIC) Specialized Small Business Investment Company (SSBIC) Certified Community Development Financial Institution (CDFI) Thrift, Bank or bank holding company Credit Union Publicly traded company Government-controlled entity Faith-Based Institution Tribal Entity 9. Structure of the Applicant CDE s Controlling Entity (check all that apply): For-profit Non-profit Small Business Investment Company (SBIC) Specialized Small Business Investment Company (SSBIC) Certified Community Development Financial Institution (CDFI) Thrift, Bank or bank holding company Credit Union Publicly traded company Government-controlled entity Faith-Based Institution Tribal Entity Not Applicable - Applicant CDE does not have a Controlling Entity APPLICANT INFORMATION PART I community INVESTMENT future BUILD access 3

10 ENTERPRISE HOUSING BUSINESS invest FUND PART I APPLICANT INFORMATION PART I: APPLICANT CDE INFORMATION (cont ) 10. Is the Applicant CDE a domestic corporation or partnership for federal tax purposes? Yes No If no, the applicant is not eligible to apply for certification as a CDE. 11. Is the Applicant CDE duly organized and validly existing under the laws of the jurisdiction in which it was incorporated or otherwise established? Yes Applicant CDE s date of incorporation (month/day/year): Applicant CDE s total assets as of the date of this application: $ No (If no, the applicant is not eligible to apply for certification as a CDE) 12. Products and services that are or will be offered by the Applicant CDE (check all that apply): Microenterprise financing Business financing Real estate financing: Retail Industrial Office space Mixed-use (housing + commercial) For-sale housing Community Facilities Financing of other CDEs Loan purchases from other CDEs Financial Counseling and Other Services 13. Is the Applicant seeking to certify Subsidiary Applicants as CDEs through this application? Yes. If yes, how many Subsidiary Applicants are you seeking to designate as CDEs? For each of the Subsidiary Applicants identified above, you must complete the Subsidiary Applicant Contact Information form on the following page. Attach as many sheets as needed. No 14. Estimate how long this application took to complete: Hours QUAL To the best of my knowledge and belief, all information in this application is true and correct. The execution of this application has been duly authorized by the governing body of the Applicant CDE. 15. Authorized Representative Signature 1 : Date: revitalize 4 capital 1 ALL APPLICATIONS REQUIRE THE SIGNATURE OF THE ORGANIZATION'S AUTHORIZED REPRESENTATIVE, AND A UNIQUE EIN FOR THE APPLICANT CDE AND EACH SUBSIDIARY APPLICANT, OR THE APPLICATION WILL BE DEEMED INCOMPLETE AND REJECTED.

11 PART I: SUBSIDIARY APPLICANT INFORMATION 1. Name of Subsidiary Applicant: 2. Subsidiary Applicant s Employer Identification Number (required for processing) 1 : 3. Mailing Address (Provide mailing address and physical address for overnight deliveries (if different). Provide nine-digit zip code): 4. Authorized Representative Name and Title, and Telephone number: address if different from #3: Fax number: address: 5. Congressional District of Subsidiary Applicant s main office: 6. Market served and estimated % of total activities (percentages should add up to 100%): % Major urban areas in a Metropolitain Area of equal to or greater than 1 million (include both central city and surrounding suburbs). % Minor urban areas in a Metropolitain Area of less than 1 million (include both central city and surrounding suburbs). % Rural areas 7. Type of entity (check all that apply): For-profit Non-profit Small Business Investment Company (SBIC) Specialized Small Business Investment Company (SSBIC) Certified Community Development Financial Institution (CDFI) Thrift, Bank or bank holding company Credit Union Publicly traded company Government-controlled entity Faith-Based Institution Tribal Entity 8. Products and services that are or will be offered by the Subsidiary Applicant (check all that apply) Microenterprise financing Business financing Real estate financing: Retail Industrial Office space Mixed-use (housing + commercial) For-sale housing Community Facilities Financing of other CDEs Loan purchases from other CDEs Financial Counseling and Other Services APPLICANT INFORMATION PART I community INVESTMENT future BUILD access 5

12 ENTERPRISE HOUSING BUSINESS invest FUND PART I APPLICANT INFORMATION PART I: SUBSIDIARY APPLICANT INFORMATION (cont ) 9. Is the Subsidiary Applicant a corporation or partnership for federal tax purposes? Yes No If no, the applicant is not eligible to apply for certification as a CDE 10. Is the Subsidiary Applicant duly organized and validly existing under the laws of the jurisdiction in which it was incorporated or otherwise established? Yes Subsidiary Applicant s date of incorporation (month/day/year): Subsidiary Applicant s total assets as of the date of this application: $ No (If no, the Subsidiary Applicant is not eligible to apply for certification as a CDE) To the best of my knowledge and belief, all information in this application is true and correct. The Subsidiary Applicant identified above is a Subsidiary of the Applicant CDE (in accordance with the Fund s definition of Subsidiary). The execution of this application by the Subsidiary Applicant has been duly authorized by the governing body of the Subsidiary Applicant. 11. Authorized Representative Signature 1 : Date: 1 ALL APPLICATIONS REQUIRE THE SIGNATURE OF THE ORGANIZATION'S AUTHORIZED REPRESENTATIVE, AND A UNIQUE EIN FOR THE APPLICANT CDE AND EACH SUBSIDIARY APPLICANT, OR THE APPLICATION WILL BE DEEMED INCOMPLETE AND REJECTED. QUAL revitalize 6 capital

13 PART II: DESIGNATION CRITERIA FOR CDES A. LEGAL ENTITY Requirements In order to be certified as a CDE, an Applicant CDE must be a domestic corporation or partnership for federal tax purposes and be duly organized and validly existing under the laws of the jurisdiction in which it is incorporated or established. An organization that is not yet a legal entity, does not yet have a valid EIN or is not a domestic corporation or partnership for federal tax purposes cannot apply for designation as a CDE. An Applicant CDE and its Subsidiary Applicants may apply under one CDE Certification Application, but must provide (1) establishing documents and (2) a unique valid EIN for each entity wishing to receive designation. An Applicant CDE may not apply on behalf of its Subsidiary Applicants if the Subsidiary Applicants are not yet legally established, are not domestic corporations or partnerships for federal tax purposes or do not have a unique EIN. T ip: In general, sole proprietorships and single member limited liability companies are not considered corporations or partnerships for federal tax purposes. Information Needed 1) Attach a copy of the Applicant CDE s articles of incorporation or other establishing documents that have been filed with the state, and all appropriate amendments thereto. 1 If the Applicant CDE is attempting to certify one or more Subsidiary Applicants as CDEs through this application, it must also attach a copy of each of those entities articles of incorporation or other establishing documents and all appropriate amendments thereto. 2) Attach a copy of the Applicant CDE s IRS notification regarding assignment of an EIN 1. If the Applicant CDE is attempting to certify one or more Subsidiary Applicants as CDEs through this application, it must also attach a copy of the IRS EIN notification for each entity. If the IRS notification regarding assignment of an EIN is not readily available, the Applicant CDE may instead submit other documentation (e.g., tax return documents, other communications with IRS), provided that such documentation references the entity s name and its EIN. T ip: 1 An Applicant CDE that is already a certified CDE does not need to provide this information. For additional information on how to obtain an EIN from the IRS, or how to obtain IRS notification regarding the assignment of an EIN, please review the CDE Certification Q&A document on the Fund s webstie at under New Markets. DESIGNATION OF CRITERIA APPLICANT FOR CDEs INFORMATION PART II I community CDFI fund INVESTMENT future BUILD access 7

14 ENTERPRISE HOUSING invest FUND QUAL revitalize 8 DESIGNATION OF CRITERIA PART II FOR CDEs BUSINESS capital B. PRIMARY MISSION Requirements A CDE must demonstrate that it has a primary mission of serving, or providing investment capital for LICs or Low-Income Persons, and that at least 60 percent of its activities (e.g., loans and investments) are targeted to Low-Income Persons or LICs. An Applicant CDE may meet the primary mission requirement by demonstrating that its signed, board-approved incorporating documents, bylaws, annual reports or other organizational documents evidence a low-income mission. A lowincome mission should include reference to Low-Income Persons or LICs. In the case of an Applicant CDE that is an Insured Depository Institution or Insured Credit Union, designation by a regulatory agency as a Low-Income Designated Credit Union or other community development institution is an indication of having such a mission. An Applicant CDE must also demonstrate that, at a minimum, 60 percent of its products and services are directed to (or will be directed to) Low-Income Persons, to individuals, businesses or organizations that serve Low-Income Persons or to residents of LICs. The following are a few examples of such activities: Investing in, lending to or providing technical assistance to businesses that are located in LICs and/or are owned by Low-Income Persons; Lending to Low-Income Persons or residents of LICs; Investing in or providing loans to support commercial properties that are located in LICs; or Investing in, lending to or providing technical assistance to organizations (e.g., CDEs or CDFIs) engaged in activities that promote community development in LICs or for the benefit of Low-Income Persons. Information Needed 1) Organizational documents from the Applicant CDE that evidence a primary mission of serving LICs or Low-Income Persons. 1 Such documentation includes, but is not limited to: signed, boardapproved bylaws, articles of incorporation, annual reports, partnership agreements or board resolutions. It is not necessary to submit multiple pieces of documentation - only submit the minimum necessary to demonstrate that your organization principally serves LICs or Low-Income Persons. 2) If any Subsidiary Applicants are seeking designation as a CDE under this application, the Applicant CDE must either: a) Submit separate organizational documents demonstrating the primary mission for each entity seeking certification; or b) Sign and submit the attached form, Certification Attesting to Primary Mission of Subsidiary Applicants. 3) All Applicant CDEs are required to complete Part III ( Certification of Authorized Representative ). Signing this form will demonstrate your organization s commitment to ensuring that at least 60 percent of its products and services (and 60 percent of the products and services of all Subsidiary Applicants) are directed to Low-Income Persons; to individuals, businesses or organizations located in LICs; and/or to organizations that principally serve Low-Income Persons or LICs. It will also ensure that the Applicant CDE and each of its Subsidiary Applicants will continue to maintain accountability to residents of LICs at all times during the course of its/their designation as a CDE. 1 An Applicant CDE that is already a certified CDE does not need to provide this information.

15 CERTIFICATION ATTESTING TO PRIMARY MISSION OF SUBSIDIARY APPLICANTS Applicant CDEs wishing to designate Subsidiary Applicants as CDEs, but who have not provided separate organizational documents for each of these entities, must sign the following certification: I certify, on behalf of (name of the Applicant CDE ), that the Subsidiary Applicant(s) listed below have the same primary mission of serving LICs or Low-Income Persons as indicated in the organizational documents of the Applicant CDE. Subsidiary Applicant(s): Name By: Signature of Authorized Representative of Applicant CDE Print Name: Title: EIN Date DESIGNATION OF CRITERIA FOR CDEs PART II community future BUILD access INVESTMENT 9

16 ENTERPRISE HOUSING invest FUND QUAL revitalize BUSINESS CDFI fund 10 PART II DESIGNATION OF CRITERIA FOR CDEs capital C. ACCOUNTABILITY Requirements Each entity seeking designation as a CDE under this application must: 1) identify the service areas that it serves or intends to serve; and 2) demonstrate that it maintains accountability to residents of the LICs in those areas. Identifying Service Areas. The Applicant CDE and each Subsidiary Applicant must identify the service areas that it serves or intends to serve. Each entity will be required to select from one of the following options: 1) Local service area(s). A local service area may be: (a) a neighborhood or neighborhoods within a local jurisdiction; (b) a city, town or local jurisdiction(s) within a larger jurisdiction; (c) a county, parish or other larger jurisdiction within a state; (d) an entire Primary Metropolitan Statistical Area (PMSA); or (e) an Indian Reservation. Entities serving or intending to serve multiple communities within a single local service area (e.g., several neighborhoods within a single city, or several cities within a single PMSA) may wish to designate the larger encompassing jurisdiction as its local service area. 2) Statewide (or territory-wide) service area. 3) Multi-state service area (2-6 states). 4) Regional service area (multiple states or portions of states that form an identifiable region). 5) National Service Area Designating a Service Area. Applicant CDEs needing to identify qualifying LICs in their service area should visit the Fund s online help desk at This help desk contains maps and worksheets identifying the qualifying census tracts throughout the country. Maintaining Accountability. An applicant must demonstrate that it is accountable to the residents of LICs in the service area that it designates. An applicant will be deemed to be accountable if at least 20% of its governing board or 20% of its advisory board(s) is representative of LICs within the selected service area. In order to be deemed representative under this accountability requirement, a board member must either: (a) reside in a LIC within the selected service area; or (b) otherwise represent the interest of residents of LICs (e.g., a small business owner whose business is located in the community, an employee or a board officer of a community-based or charitable organization serving the community, etc.) in the selected serivce area. The Fund encourages Applicant CDEs to appoint some Low-Income Persons from LICs to their advisory and/or governing boards. T IP: Board members that are themselves, or whose family members are, principals or staff members of the Applicant CDE (or Subsidiary Applicant), its affiliated entities or, except in limited circumstances, its investors cannot be deemed representative of LICs. An Applicant CDE (or Subsidiary Applicant) may, however, designate a board member that also serves on the board of an affiliated entity as representative of LICs, provided that the board member is representative of LICs through means other than his or her association with the affiliated entity. An entity that does not have a governing board, but in which the governing authority resides with a general partner or managing company, may satisfy the accountability requirements through the board(s) of the general partner or managing company. Any entity seeking to maintain accountability through advisory board(s) must also be able to demonstrate that the viewpoints of the advisory board(s) are given sufficient consideration and attention by the governing board. To maintain accountability to the residents

17 of LICs in a local service area(s), the applicant must demonstrate that at least 20% of its governing board or 20% of its advisory board is comprised of individuals that represent LICs in each of the local service areas identified. An entity may need to establish multiple advisory boards in order to satisfy this requirement. To maintain accountability to the residents of LICs in a statewide service area, a multi-state service area, a regional service area, or a national service area, the applicant must demonstrate that at least 20% of its governing board or 20% of its advisory board(s) is representative of a cross-section of LICs within the state(s) that it serves. An entity may need to establish multiple advisory boards in order to satisfy this requirement, or select board members that are from organizations that represent the interests of a cross-section of LICs (e.g., a state-wide organization or nationwide non-profit community development organization). T ip: For additional updated guidance on Accountability, please review the CDE Certification Q&A Document on the Fund s website under New Markets. Target Areas The Fund may designate, upon request from an applicant, one or more "target areas" within otherwise ineligible census tracts as LICs if: (a) the boundary of such an area is continuous, and the continuous boundary that delineates the portion of the census tract as a "lowincome community" is a pre-existing boundary (such as an established neighborhood, political or geographic boundary); (b) the area would satisfy the requirements of a LIC (either on account of the poverty rate or Median Family Income) if it were a census tract; and (c) an inadequate access to investment capital exists in the area, as demonstrated through studies, surveys or other analysis provided by the applicant. It is incumbent upon the organization seeking designation of the target area to furnish the Fund with the information necessary to determine whether the target area satisfies each of the three requirements above. In order to comply with this requirement, an organization may need access to census data (such as census block group data) that is not available on the Fund's On-Line Help Desk. Such data may be retrieved through the Census Bureau's website at A CDE seeking to designate a target area as a LIC may submit its request to the Fund at any time, though the Fund encourages those organizations that know that they are likely to serve target areas within census tracts to identify such areas at the time of submission of their initial application for certification as a CDE. Please refer to the Fund s CDE Certification Q&A document (under New Markets at for additional information on how to request designation of Target Areas. DESIGNATION OF CRITERIA FOR CDEs PART II access community INVESTMENT future BUILD 11

18 ENTERPRISE HOUSING PART II DESIGNATION OF CRITERIA FOR CDEs BUSINESS invest FUND SERVICE AREA FORM For each entity seeking certification under this application, complete the following information (submit as many copies of this page as necessary) 1. For more information on representation and accountability, refer to the Fund s CDE Certification Q&A Document under New Markets at 1) Name of entity seeking certification (identify): 2) Do the Applicant CDE and the Subsidiary Applicant(s) have the same service area and same accountability mechanism (i.e., same governing or advisory board)? Yes No NA (if no, this form must be filled out separately for each entity.) 3) Service area(s) that the entity serves or intends to serve: Local service areas (e.g., neighborhoods, cities, counties, or PMSAs) within a state or territory: Statewide (or territory-wide) service area(s): Multi-state service area(s) (2-6 states or territories): Regional service area (multiple states that form an identifiable region): National service area 4) The entity intends to maintain accountability to the residents of LICs through their representation on: Governing Board Governing Board of Controlling Entity Advisory Board(s) (see item #6 below) 5) All Applicant CDEs are required to complete an accountability chart. This chart must be completed for (i) each entity seeking CDE certification, and (ii) each advisory board of each entity, if there are multiple advisory boards. Visit the Fund's website at under New Markets to download an electronic, MS Word version of this form. Use additional sheets if necessary. QUAL 6) Certain Applicant CDEs are required to submit a geocoded data report to the Fund along with their accountability chart. Please refer to the instructions provided in the accountability chart to determine whether your organization must submit this report. revitalize 12 capital 1 An Applicant CDE that is already a certified CDE only needs to provide this information on behalf of its Subsidiary Applicants.

19 7) If your organization intends to maintain accountability to the residents of its LIC through their representation on Advisory Board(s), on a separate sheet of paper, provide narrative information detailing: The process by which members are selected for the advisory board; How often the advisory board meets (to be accountable, a board must meet at least annually); How the board solicits (or intends to solicit) feedback from residents of LICs and how often this information is (or will be) collected (e.g., feedback collected semi-annually at community meetings, feedback collected annually through surveys, etc.); and How the information is used (or will be used) to inform the actions of the governing board in developing the organization s policies (e.g., an advisory board representative sits on the governing board; a member of the advisory board presents reports to the governing board, etc.). DESIGNATION OF CRITERIA FOR CDEs PART II community INVESTMENT future BUILD access 13

20 ENTERPRISE HOUSING invest FUND QUAL revitalize 14 PART II DESIGNATION OF CRITERIA FOR CDEs BUSINESS capital Board Composition as of: (Today s Date) Board Type: (Governing or Advisory) Total LIC Representatives: (Number) Accountability Chart for: (Applicant CDE or Subsidiary Applicant Name) Service Area: (Identify name of city, state, region, etc.) Total Board Members: (Number) Instructions: 1) Check the "Conflict of Interest" box at the top of the table to certify that such conflicts do not exist with respect to board members identified as being representative of LICs. 2) In column 1, list all members of your governing or advisory board. Do not list more than one person in a single row. 3) In column 2, check the appropriate box to indicate how the board member is deemed representative of the LIC. You need only check one box per board member. 4) In column 3, complete the Service Area Information as required relevant to the information provided in column 2. 5) If you've checked boxes a, b or d under Column 2, you must submit to the Fund verification that you have geocoded each address and that they are in qualifying census tracts in your service area. You may use the Fund's Online Help Desk at to print out a customized geocoded report. Simply click on the NMTC Program link and select option 3: "Use the address of your customers or transactions." Once you've submitted each address, click on "geocoded data report" to view a list of the addresses and their census tracts. Print this list and submit it to the Fund along with your other application materials. Conflict of Interest. Check here to certify that none of the board members listed below as being representative of a LIC, nor any of their family members, are principals or staff members of the Applicant CDE (or Subsidiary Applicant), its affiliated entities or its investors. SERVICE AREA INFORMATION Name Relationship to the LIC 1. a. Is a resident of a LIC (provide address and census tract in column 3). b. Is a small business owner who controls, operates or manages a business located in a LIC that: a) provides goods and services to residents of the LIC; or b) principally employs residents from the LIC (provide company name, address and census tract in column 3). c. Is an employee or board member of a non-affiliated community-based or charitable organization providing more than 50% of its activities or services to residents of LICs (provide the individual's title and the organization name, area served and mission in column 3). d. Is a religious leader whose congregation is based in a LIC (provide the individual's title and the religious entity name, address and census tract in column 3). e. Is an employee of a governmental agency or department that principally serves LICs; or is (or works for) an elected official whose constituency is comprised principally of residents of LICs (provide title, agency/department and community served in column 3). f. Is not representative of a LIC (do not complete column 3).

21 Accountability Chart for: Board Type : (Applicant CDE or Subsidiary Applicant Name) (Governing or Advisory) Name Relationship to the LIC SERVICE AREA INFORMATION 2. a. Is a resident of a LIC (provide address and census tract in column 3). b. Is a small business owner who controls, operates or manages a business located in a LIC that: a) provides goods and services to residents of the LIC; or b) principally employs residents from the LIC (provide company name, address and census tract in column 3). c. Is an employee or board member of a non-affiliated community-based or charitable organization providing more than 50% of its activities or services to residents of LICs (provide the individual's title and the organization name, area served and mission in column 3). d. Is a religious leader whose congregation is based in a LIC (provide the individual's title and the religious entity name, address and census tract in column 3). e. Is an employee of a governmental agency or department that principally serves LICs; or is (or works for) an elected official whose constituency is comprised principally of residents of LICs (provide title, agency/department and community served in column 3). f. Is not representative of a LIC (do not complete column 3). 3. a. Is a resident of a LIC (provide address and census tract in column 3). b. Is a small business owner who controls, operates or manages a business located in a LIC that: a) provides goods and services to residents of the LIC; or b) principally employs residents from the LIC (provide company name, address and census tract in column 3). c. Is an employee or board member of a non-affiliated community-based or charitable organization providing more than 50% of its activities or services to residents of LICs (provide the individual's title and the organization name, area served and mission in column 3). d. Is a religious leader whose congregation is based in a LIC (provide the individual's title and the religious entity name, address and census tract in column 3). e. Is an employee of a governmental agency or department that principally serves LICs; or is (or works for) an elected official whose constituency is comprised principally of residents of LICs (provide title, agency/department and community served in column 3). f. Is not representative of a LIC (do not complete column 3). community INVESTMENT future BUILD access 15

22 ENTERPRISE HOUSING invest FUND QUAL revitalize BUSINESS 16 capital Accountability Chart for: Board Type : (Applicant CDE or Subsidiary Applicant Name) (Governing or Advisory) SERVICE AREA INFORMATION Name Relationship to the LIC. a. Is a resident of a LIC (provide address and census tract in column 3). b. Is a small business owner who controls, operates or manages a business located in a LIC that: a) provides goods and services to residents of the LIC; or b) principally employs residents from the LIC (provide company name, address and census tract in column 3). c. Is an employee or board member of a non-affiliated community-based or charitable organization providing more than 50% of its activities or services to residents of LICs (provide the individual's title and the organization name, area served and mission in column 3). d. Is a religious leader whose congregation is based in a LIC (provide the individual's title and the religious entity name, address and census tract in column 3). e. Is an employee of a governmental agency or department that principally serves LICs; or is (or works for) an elected official whose constituency is comprised principally of residents of LICs (provide title, agency/department and community served in column 3). f. Is not representative of a LIC (do not complete column 3). a. Is a resident of a LIC (provide address and census tract in column 3). b. Is a small business owner who controls, operates or manages a business located in a LIC that: a) provides goods and services to residents of the LIC; or b) principally employs residents from the LIC (provide company name, address and census tract in column 3). c. Is an employee or board member of a non-affiliated community-based or charitable organization providing more than 50% of its activities or services to residents of LICs (provide the individual's title and the organization name, area served and mission in column 3). d. Is a religious leader whose congregation is based in a LIC (provide the individual's title and the religious entity name, address and census tract in column 3). e. Is an employee of a governmental agency or department that principally serves LICs; or is (or works for) an elected official whose constituency is comprised principally of residents of LICs (provide title, agency/department and community served in column 3). f. Is not representative of a LIC (do not complete column 3)..

23 PART III: CERTIFICATION OF AUTHORIZED REPRESENTATIVE All Applicant CDEs must sign the following certification: I certify, on behalf of (name of the Applicant CDE) and, if applicable, its Subsidiary Applicants, that it/they will, at all times during the course of its/their designation as a CDE, direct a minimum of 60 percent of its/their activities (including loans, investments and related technical assistance) to Low-Income Persons, to persons or organizations located in Low-Income Communities, or to other organizations that principally serve Low-Income Persons or residents of Low-Income Communities. I further certify that the Applicant CDE and, if applicable, its Subsidiary Applicant(s), will maintain accountability to residents of Low-Income Communities that it/they serve, through their representation on the governing board or on an advisory board to the Applicant CDE (and, if applicable Subsidiary Applicants), at all times during the course of its/their designation as a CDE. The Applicant CDE and, if applicable, its Subsidiary Applicant(s) acknowledges that it may be required to certify to the Fund, not less than annually, that it continues to comply with the above certification requirements, and to notify the Fund if the Applicant CDE and, if applicable, its Subsidiary Applicant(s) fails to comply with these requirements. The Applicant CDE and, if applicable, its Subsidiary Applicant(s) acknowledges further that a failure to comply with these requirements may result in the Applicant CDE and, if applicable, its Subsidiary Applicant(s) losing its designation as a CDE, as well as the recapture of NMTC Allocations provided to the Applicant CDE or Subsidiary Applicants and/or the repayment of NMTCs claimed by investors for making Qualified Equity Investments in the Applicant CDE or Subsidiary Applicants. By: Signature of Authorized Representative of Applicant CDE Print Name: Title: Date CERTIFICATION OF APPLICANT AUTHORIZED INFORMATION REPRESENTATIVE PART PART I III community future BUILD access INVESTMENT 17

24 ENTERPRISE HOUSING PART IV QUESTIONNAIRE OF APPLICANT CDEs BUSINESS CDFI fund invest FUND PART IV: QUESTIONNAIRE OF APPLICANT CDES The Fund requires that all Applicant CDEs complete this questionnaire 1. The information provided here has no bearing on the applicant s ability to be certified as a CDE and is not binding. Rather, the information will be used to assist the Fund in planning its CDE reviews. Your application will not be considered complete unless you submit this questionnaire. 1) Does the Applicant CDE and/or its Subsidiary Applicant(s) intend to apply for NMTC allocations in the next round that allocations are made available? Yes No Do not know 2) If yes, do you intend to transfer tax credit allocations to Subsidiary Applicants? Yes No Not Applicable 3) Does the Applicant CDE and/or its Subsidiary Applicant(s) intend to sell eligible loans to other CDEs? Yes No Do not know 4) If yes, have you approached such CDEs? Yes No Not Applicable If yes, please identify the CDE(s): 5) Does the Applicant CDE and/or its Subsidiary Applicant(s) intend to request a loan or equity investment from other CDEs? Yes No Do not know 6) If yes, have you approached such CDEs? Yes No Not Applicable QUAL If yes, please identify the CDE(s): revitalize 18 capital 1 An Applicant CDE that is already a certified CDE does not need to provide this information.

25 AFFILIATE Any legal entity that Controls, is Controlled by, or is under common Control with, an Applicant, Applicant CDE, or Subsidiary Applicant. ALLOCATEE An Applicant that receives a NMTC Allocation. ALLOCATION AGREEMENT An agreement to be entered into by the Fund and a CDE, relating to the NMTC Allocation, pursuant to IRC 45D(f)(2). ALLOCATION APPLICATION The application form, issued by the Fund pursuant to a Notice of Allocation Availability (NOAA), to be completed and submitted by an Applicant in order to be considered for a NMTC Allocation. APPLICANT Any legal entity that is applying to the Fund for the receipt of a NMTC Allocation. This term includes any Subsidiary of the Applicant which may receive a transfer of all or part of a NMTC Allocation from the Applicant. APPLICANT CDE Any legal entity that is applying to the Fund to be certified as a CDE, either for itself or on behalf of its Subsidiary Applicants. AUTHORIZED REPRESENTATIVE An officer, or other individual, who has the actual authority to sign for and make representations on behalf of the Applicant, Applicant CDE or Subsidiary Applicant. CDE CERTIFICATION APPLICATION The application form, issued by the Fund, to be completed and submitted by an entity in order to be certified as a CDE. COMMUNITY DEVELOPMENT ENTITY (CDE) Under IRC 45D(c)(1), any domestic corporation or partnership if: 1. The primary mission of the entity is serving, or providing investment capital for, Low-Income Communities or Low-Income Persons; 2. The entity maintains accountability to residents of Low-Income Communities through their representation on any governing board of the entity or on any advisory board to the entity; and 3. The entity is certified by the Fund as a CDE. Specialized Small Business Investment Companies (SSBICs) and Community Development Financial Institutions (CDFIs) are deemed to be CDEs in the manner set forth in Guidance published by the Fund (66 Federal Register 65806, December 20, 2001). GLOSSARY OF TERMS FOR THE NMTC PROGRAM community INVESTMENT future BUILD access 19

26 ENTERPRISE HOUSING BUSINESS invest FUND COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION (CDFI) An entity that has been certified by the Fund as meeting the criteria set forth in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702). For further details, refer to the CDFI Program regulations set forth at 12 CFR CONTROL Control is defined as: 1. Ownership, control, or power to vote more than 50 percent of the outstanding shares of any class of voting securities of any entity, directly or indirectly or acting through one or more other persons; 2. Control in any manner over the election of a majority of the directors, trustees, or general partners (or individuals exercising similar functions) of any other entity; or 3. Power to exercise, directly or indirectly, a controlling influence over the management policies or investment decisions of another entity, as determined by the Fund. CONTROLLING ENTITY An entity that Controls an Applicant, Applicant CDE or Subsidiary Applicant. DISADVANTAGED BUSINESS A business that is (a) located in a Low-Income Community; or (b) is owned by a Low- Income Person; or (c) a business that has inadequate access to investment capital. DISADVANTAGED COMMUNITY This term has the same meaning as a Low-Income Community. EQUITY INVESTMENT Under IRC 45D(b)(6) and the Temporary and Proposed Income Tax Regulations, equity investment means any stock (other than nonqualified preferred stock as defined in IRC 351(g)(2)) in an entity that is a corporation and any capital interest in an entity that is a partnership. QUAL revitalize 20 capital FAITH BASED ORGANIZATION An organization whose founding (through capitalization or otherwise), governance or membership is derived from a religious institution. FINANCIAL COUNSELING AND OTHER SERVICES Advice provided by a CDE relating to the organization or operation of a trade or business. See 26 CFR 1.45D-1T(d)(7). INSURED CREDIT UNION Any credit union, the member accounts of which are insured by the National Credit Union Share Insurance Fund. INSURED DEPOSITORY INSTITUTION Any bank or thrift, the deposits of which are insured by the Federal Deposit insurance Corporation.